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Nestle's Global Expansion
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"Bottled Life" documentary 2012
- extracting almost all sources of water in Pakistan
Child Labour in Columbia
San Bernardino National Forest
- still extracting water even though permit expired in 1988
Ownership Advantages
Effective Acquisition and Merger Department
- 1905 - Anglo-Swiss Condensed Milk
- 2001 - Purina Pet Food
- 2002 - Dreyer's Ice Cream
Production Circuit
Internalization Advantages
Location Advantages
34 Product Technology Center and Research and Design Centers worldwide
Trends:
- First few centers focused on the product innovation
- Later centers focused on research and development
1630 warehouses worldwide
- "No truck leaves empty" policy
Nestle Water's keeping products local, and as fresh as possible
- 95% of water production was sold in the country of origin
- average distance traveled from production to consumer is 450 kms
Manufacturing plants all around the world, gives easy access into other markets
- 2011 8th manufacturing plant in India
- 2013 Maggi plant in Russia
Business Principles
Conclusion
Ten principles in five categories
- Consumers
- Human Rights
- People
- Suppliers and Customers
- Environment
States - Negative Outcomes
The OLI Framework shows the advantages they have as a company that help their success when expanding into other markets
The Production Circuit shows how the major actors also positively affect Nestle's expansion and how they can also act as a barrier
Other government and regulatory relationships have negative outcomes for Nestle's business.
- United States
- Wisconsin
- Michigan
- FDA - BOOST Kids Essentials
- India
Civil Societies
Transnational Corporations
Joint Ventures With Other Transnational Corporations
Coca Cola - Nestea - African Interior
General Mills - Cereal Partners Worldwide
Labour
Business for Social Responsibility
- addresses wage gaps in developing countries to provide a living wage to workers
- Peru, Greece, Nicaragua, Ukraine, Vietnam
Child Labour
- Minimum age for workers
- safe and non-hazardous working conditions for young workers
Consumers
Many subsidiaries - many product options
Tailored products for different countries
States - Positive Outcomes
Some government and regulatory relationships have positive outcomes for Nestle's business.
- United States
- California
- British Columbia